PROBLEM 3-2:

On February 2020, Marlon Balista started his medical services in practice. During the
month the following transactions were completed:

FEBRUARY 2020
1. Mr. Balista invested P150,000 in a new bank account in the name of Marlon Balista,
M.D.
3. Purchased medical equipment costing P62.000, paying P20,000 cash and the balance
on
notes payable.
4. Bought medical supplies for cash, P12,000.
7. Paid rent for the month, P6,000.
8. Received P15,000 for medical services rendered.
10. Acquired table & chairs on account, P8,500
13. Billed medical services to a client, P34,000
15. Paid salaries to employees, P26,400
17. Paid another doctor for preparing laboratory services on a patient, P3,000
20. Paid creditors on account, P2,500
22. Paid insurance premium for the quarter, P4,700.
23. Paid miscellaneous expenses, P2,200.
25. Received P34,000 from patient on account.
27. Paid salaries of medical technician and other employees, P58,50
28. Received cash from cash patients, P68,500

INSTRUCTIONS:
1. Prepare journal entries on the above transactions.
2. Post the entries to the ledger. Use the following account titles given:

● Cash, 11 ● Balista, Drawing, 32

● Accounts receivable, 12 ● Medical revenues, 41
● Medical supplies, 13 ● Salary expense, 51
● Medical equipment, 14 ● Rent expense, 52
● Furniture & Fixtures, 15 ● Laboratory expense, 53
● Notes payable, 21 ● Utilities Expense, 54
● Accounts payable, 22 ● Insurance expense, 55
● Balista, Capital, 31 ● Miscellaneous expense, 58

3. Prepare a TRIAL BALANCE for the month.

 1. JOURNAL ENTRY

GENERAL JOURNAL

Date Description P/R Debit Credit

2020

February 1 Balista, 150,000

Capital

Cash 150,000

Initial
Investment

3 Medical 62,000
Equipment

Cash 20,000

Notes 42,000
Payable

Purchased
Medical

Equipment on
account

4 Medical 12,000
Supplies

Cash 12,000

Purchased
Supplies

7 Rent Expense 6,000

Cash 6,000

Paid
Rent Expense

8 Cash 15,000
 Medical 15,000
Revenue

Collected
Medical
Revenue

10 Furniture and 8,500

Fixtures

Accounts 8, 500
Payable

Purchased
Furn. & Fix

13 Accounts 34,000
Receivable

Medical 34,000
Revenue

Collected
Medical
Revenue on
Account

15 Salary 26,400
Expense

Cash 26,400

Paid
Salary
Expense

17 Laboratory 3,000
Expense

Cash 3,000

Paid
Laboratory
Expense

20 Accounts 2,500
Payable
 Cash 2,500

Paid
Creditors on
Account

22 Insurance 4,700
Expense

Cash 4,700

Paid
Insurance
Expense

23 Miscellaneous 2,200
Expense

Cash 2,200

Paid
Misc. Expense

25 Accounts 34,000
Receivable

Cash 34,000

Collected on
Account

27 Salary 58,500
Expense

Cash 58,500

Paid
Salaries
Expense

28 Cash 68,500

Medical 68,500
Revenue

Collected
Medical
 Revenue

2. LEDGER

GENERAL LEDGER MONTH END CLOSING

General Ledger Sheet Sheet No. 1

Account: Cash Account No. 11

Date Details Ref. Debit Credit Balance

2020, February

1 F1 150,000 -

3 F3 20,000 130,000

4 F4 12,000 118,000

7 F7 6,000 112,000

8 F8 15,000 127,000

15 F15 26,400 100,600

17 F17 3,000 97,600

20 F20 2,500 95,100

22 F22 4,700 90,400

23 F23 2,200 88,200

25 F25 34,000 112,200

27 F27 58,500 63,700

28 F28 68,500 132,200

General Ledger Sheet Sheet No. 2

Account: Accounts Receivable Account No. 12

 Date Details Ref. Debit Credit Balance

2020, February

13 F13 34,000 34,000

25 F25 34,000 0

General Ledger Sheet Sheet No. 3

Account: Medical Supplies Account No. 13

Date Details Ref. Debit Credit Balance

2020, February

4 F4 12,000 12,000

General Ledger Sheet Sheet No. 4

Account: Medical Equipment Account No. 14

Date Details Ref. Debit Credit Balance

2020, February

3 F3 62,000 62,000

General Ledger Sheet Sheet No. 5

Account: Furniture and Fixtures Account No. 15

Date Details Ref. Debit Credit Balance

2020, February

10 F10 8,500 8,500

General Ledger Sheet Sheet No. 6

Account: Notes Payable Account No. 21

Date Details Ref. Debit Credit Balance

2020, February

3 F3 42,000 42,000

General Ledger Sheet Sheet No. 7

Account: Accounts Payable Account No. 22

Date Details Ref. Debit Credit Balance

2020, February

10 F10 8,500 8,500

20 F20 2,500 6,000

General Ledger Sheet Sheet No. 8

Account: Balista, Capital Account No. 31

Date Details Ref. Debit Credit Balance

2020, February

1 F1 150,000 150,000

General Ledger Sheet Sheet No. 9

Account: Medical Revenue Account No. 41

Date Details Ref. Debit Credit Balance

2020, February

8 F8 15,000 15,000

13 F13 34,000 49,000

28 F28 68,500 177,500

General Ledger Sheet Sheet No. 10

Account: Salary Expense Account No. 51

Date Details Ref. Debit Credit Balance

2020, February

15 F15 26,400 26,400

27 F27 58,500 84,900

General Ledger Sheet Sheet No. 11

Account: Rent Expense Account No. 52

Date Details Ref. Debit Credit Balance

2020, February

7 F7 6,000 6,000

General Ledger Sheet Sheet No. 12

Account: Laboratory Expense Account No. 53

Date Details Ref. Debit Credit Balance

2020, February

17 F17 3,000 3,000

General Ledger Sheet Sheet No. 13

Account: Insurance Expense Account No. 55

Date Details Ref. Debit Credit Balance

 2020, February

22 F22 4,700 4,700

General Ledger Sheet Sheet No. 14

Account: Miscellaneous Expense Account No. 58

Date Details Ref. Debit Credit Balance

2020, February

23 F23 2,200 2,200

3. TRIAL BALANCE
BALISTA MEDICAL SERVICES

TRIAL BALANCE

FEBRUARY 2020

ACCOUNT TITLE P/R DR CR

Cash 132,000

Accounts Receivable 0

Medical Supplies 12,000

Medical Equipment 62,000

Furniture & Fixtures 8,500

Notes Payable 42,000

Accounts Payable 6,000

Balista, Capital 150,000

Medical Revenues 117,500

Salary Expense 84,900

Rent Expense 6,000

Laboratory Expense 3,000

Insurance Expense 2,200

Miscellaneous Expense 4,700

Total 315,500 315,500